The Top 5 Biggest Tobacco Companies

Published on July 5th, 2012 00:00

Philip Morris International

Philip Morris International, with the help of its affiliated companies produces and sells cigarettes and other smoking products allover the world. Its brand portfolio includes a wide range of cigarette brands as Marlboro, Parliament, L&M, ChesterfieldandRed & White. The tobacco giant sells its products in more than 180 countries.
The company’s cigarette shipment volume raised by about 5% in the first quarter of 2012 to 220 billion units, mostly due to increase in its African, Asian and Easter Europe regions. European Union demonstrated weaker results because of a relatively low market share in the sector. Asia had the highest growth in terms of volume, with around 11% improvement in the 1Q. The whole shipment volume from all regions was lifted by 5% due to cigarette brands as Marlboro and Parliament. The company’s other smoking products as: cigars, pipes and roll-your –own cigarettes raised by 16%. The annual revenue has grown at about 12%.
PMI has surpassed the market as well as it competitors within a one year period. At present the cigarette manufacturer continues to demonstrate growth in its different areas in terms of increased unit sales and net profits.

Reynolds American

Reynolds American produces and sells smoking products not only in the United States but also abroad. The company offers such cigarette brands as: Camel, Winston, Pall Mall and many others. It also distributes smokeless products known as Grizzly and Kodiak brands.
The company’s revenue has dropped by 6% due to lower cigarette volumes. If taking about the annual figures, Reynolds’ revenues dropped by about 1.5%. However, its gross margins are higher than PMI’s by 25%.
The manufacturer has underperformed the market as well as its biggest rivals within a year. Reynolds’ can be profitable stock for those investors who give preference to dividends.

Lorillard

Lorillard manufactures and sells smoking products under more than 43 brand names, as Kent, Maverick, Newport and others.
Company’s full domestic volumes dropped in the first quarter of 2012 in comparison to the 1Q of the 2011; however this decrease was in conformity with the industry. Net sales for the company also dropped in that period, lower by 0.5%. Lorillard’s credit ratings are lower than of its rivals, mostly due to its reliance on one cigarette brand, Newport. Any aggravation in its performance in the future can deter the profitability of the whole company.

British American Tobacco

British American Tobacco (BAT) produces and distributes such popular cigarette brands as Lucky Strike, Viceroy, Dunhill, Vogue and etc. Besides regular cigarettes, the company also offers cigars, roll-your-own cigarettes and pipe. The quarterly profit is amazing at 5%, which ranks far above of most of its competitors. BAT has a dividend yield of about 5.75%.

Altria Group

Altria Group produces cigarette products and wine in U.S. and abroad. It sells smoking products under the Virginia Slims, L&M, Benson & Hedges brands. The company owns a whole cash of about $4 billion and a raised debt of almost 370%.